Weekly News (July 26, 2017)

1. Palisades Park, NJ, illegal basement renting headache

Some tenants threaten owners without paying rent / run away over night without paying a few month rent
Town prohibits altering basement and renting by law
No practical solution from attorney → needs systematic approach to solve the situation
Reality is Palisades Park is high rental demand area
Town also prohibits short term rent for less than 30 days / Fine: $1,250 per night

2. NJ State failed to impose tax on Airbnb operation

Governor Christie vetoed to bill to impose tax on Airbnb and house sharing business
The bill proposed to charge 18% on this house sharing business- same as hotel
Last year in NJ, 6100 owners have had 257,000 renters and made $50 Million incomes

3. 63 story mixed use building will be in Long Islands City, NY

At 29-55 Northern Blvd, Long Island City (former Clock tower)
Total 1 Million SF → 786,335 SF: Residential (763 units rental) / 87,020 SF Commercial
Biggest project among developing project s in Queens / Developed by Dust Organization / Purchased the lot at $175 Million
Also Dust Organization will develop 7 building Hallets Point re-development project → will provide 2400 unit residential (Total cost: $1.5 Billion)

4. Former ‘RKO Keith’ Theater will be re-borne as 16 story mixed use building

5. NY State is #1 for long distance commuting

16% of residence commute over 60 miles: 2 hours driving
Example: Scott Ubert lives in Bethlehem, PA wakes up 5am, goes to bus stop 10 minutes away, Rides a bus at 6:20, arrives Port Authority, walks about 20 minutes, arrives at work before 9am (During 2 hour ride in a bus, he prepares menu for the day on a laptop) He purchased 3100 SF, 5 bedrooms colonial at $375,000
According to 2013 US Census, over 21% of workforce commute over 60 miles / Maryland: 15%/ New Jersey:15%.
Increasing Manhattan commuting → Bucks County, Pike County in PA, Philadelphia in PA / Dutchess County, Rockland County, Orange County in NY / Sussex County, Warren County in NJ
Reason: 1. Housing price in city area soaring, 2. Technology advance to work during commuting hours

6. Seller’s Market Now

According to NAR, US median price is $244,800 → 6% Up CMT last year
Reasons to be seller market: 1. Buying desire has gone up as economy recovers (potential demand to buy gone up by 30%) 2. House owning period become longer (When the market was hot → 4 years / Now → 8 years)
When it becomes seller’s market→ Buyer’s deposit / down payment increasing. No contingency to sell own homes. Possible multiple offer → Possibly higher than listing price. Possible deal without appliances.

7. Mortgage Rate is down after 2 weeks increase

Slipped back to below 4 % level → 96% from 4.03% for 30 year
45% a year ago / Average rate in 2016: 3.65 %
15 year rate: 3.23% from 3.29%
Mortgage rates still remain historically low even Federal Reserve began to ratchet up short term rates

8. Sears agreed with Amazon that ‘Alexa’ will help it’s sale

Alexa-capable appliances to be sold on-line
Sears stocks went up by 18%
Kenmore CEO, Edward Lampert said: The launch of Kenmore products on Amazon.com will significantly expand the distribution and availability of the Kenmore brand
The agreement includes delivery, installation and service work beyond the point of sale, that comes with product warranties

9. Amazon goes to RE business?

On 7/11 ‘Hire a Realtor near (Zip code)’ appeared on Amazon Home and Business Service section → on 7/12 6:35pm disappeared
Zillow stocks dropped $44.54 from $46.15 that day
Amazon Hone and Business section has referral program to connect home improvement and home appliance installation and receive referral fee
Recently Amazon announced Ad to hire Smart home device professionals
Amazon launched service joining with Best buy (Geek Sqaud service)
If Amazon connects buyer/seller with Realtor → Zillow, Redpin will be in danger to survival level